A federal judge signed off on bankrupt crypto firm Genesis Global Capital’s settlement with the Securities and Exchange Commission over allegations a digital-asset lending program it helped run violated the agency’s rules.
Genesis will pay $21 million under the terms of the agreement approved by the judge on Monday. The SEC sued Genesis and Gemini Trust Co. in January 2023, alleging that the companies illegally raised billions of dollars’ worth of cryptoassets from investors through the so-called Gemini Earn program.
The program, which was launched in February 2021, allowed Gemini customers to collect as much as 8% in interest on their digital-asset holdings by loaning them to Genesis. The SEC has said the arrangement violated securities laws.
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